Post by : Badri Ariffin

In a significant development for U.S. local television, Sinclair Broadcast Group has proposed a bid of $7 per share to take over E.W. Scripps Company. Announced on Monday, this merger would unite two major broadcasting entities, potentially altering the competitive landscape across the media sector.

Having previously increased its holdings to nearly 10% of Scripps’ Class A shares, Sinclair currently operates 185 stations in 85 markets, including the Tennis Channel. Should the deal proceed, Scripps’ shareholders would receive a mix of cash and stock from Sinclair, while retaining around 12.7% of the new entity. Sinclair has set a deadline for a response from Scripps by December 5.

Based in Ohio, Scripps operates over 60 stations spanning more than 40 markets, alongside national platforms like Scripps News and Court TV. The company acknowledged receipt of Sinclair’s proposal and will evaluate it responsibly, ensuring it addresses the interests of its stakeholders and audiences. They have underlined their commitment to safeguarding against opportunistic external offers.

Following the bid's announcement, Scripps’ stock surged over 7.5% to close at $4.43, whereas Sinclair’s shares rose by 1.41% to settle at $15.87.

Industry analysts highlight a growing trend towards consolidation, with Nexstar Media Group's recent acquisition of Tegna for $6.2 billion exemplifying this shift. While advocates suggest that larger corporations provide better competition against tech firms and national media, critics caution that it may lead to a homogenization of local news and diminished independent reporting.

Regulatory approvals remain a significant consideration; however, Sinclair is optimistic that the acquisition can navigate existing regulations. The broader U.S. media framework may also play a role, with recent discussions by the FCC hinting at possible adjustments to station ownership limits.

This proposed acquisition highlights both the aggressive pursuit of market share in local television and the ongoing concerns regarding the variety and diversity of news coverage available to viewers.

#Business News #Economy